Bitcoin price levels down after setbacks to respond to regulations

Bitcoin prices are not as shaky as they were during the last three months of last year, swinging between a minimum of $13,000 and maximum of $17,000 levels.

Bitcoin started the year at the $13,000 level and the highest it hit this year was a $17,000 level on January 5. It hasn’t yet dropped below the $13,000 level this year.

Many people will regard that as a poor performance because they are using to regular short spikes. And last month December 17, the cryptocurrency broke the $20,000 mark. But there have been some setbacks it had and has to deal with until now to rise further.

China’s ban on ICO and continued crackdown on the industry including shutting crypto exchanges did not have any impact. Even if the country held two thirds of crypto trades before the crackdown. However, Bitcoin came into 2018 with regulatory pressures out of U.S.A. and other regimes such as India.

For instance, China holds majority of Bitcoin mining power but the continued crackdown on cryptocurrencies. Thus it is causing some companies to consider a move to other countries. An example is the recent announcement by ZQMiner and Bitmain Technologies. However, which operates some of the largest mining farms in China.

Many miners in the country have been taking advantage of the cheap and often subsidized power. Though the country wants to make this power more expensive, cutting into the profit margins.

Also Read: Hancock hospital computer system hacked, attackers asks Bitcoin ransom

A recent announcement by South Korea Ministry of Justice that the country was planning to ban crypto trading. Later on it was reverse because it was done without the consent of the Ministry of Strategy and Justice and government agencies involving in regulating cryptocurrencies.

“The South Korean government has no other choice but to follow the regulatory frameworks and trends established by other leading governments. While there certainly exists a negative reputation attached to the cryptocurrencies. The government’s stance is to allow what has to be, for the benefit of the South Korean market.”

The news however had some impacts on the markets.

US Treasury has also in the recent past made more announcements about its intention to regulate cryptocurrencies. Treasury Steven Mnuchin said Friday last week that the treasury will work with Group of 20 nations to prevent Bitcoin from being in use “to do bad things.”

He said they will form a group that will ensure Bitcoin wallets do not become the Swiss numbered bank account (equivalent to a borderless Swiss bank account).

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David

David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.

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